Frequently Asked Questions (FAQ)
Selling Your Policy
What is a FIRM offer?
A firm offer is what we offer. This means we are buying your policy directly from you with our own money. We are buyers, not brokers. This means that, unlike some of our competitors, we do not rely on matching our clients to buyers, we are the buyer. So we can have the whole buying process completed within 3-6 weeks.
How long is the offer open for?
Your offer is open for 7 days from the date it gets valued (the date will be shown on the top left hand corner of the contract). Anything outside this time frame may need to be re-valued or voided depending on our criteria at that time.
I have a higher FIRM offer, can you improve on yours?
If you get a higher FIRM offer please let us know the name of the company that offered this to you and the price. One of our representatives will forward this onto the valuation department to see if we can compete against them.
How will I get paid?
We will pay you in the form of a solicitor's cheque once you supplied us with all the documents and we have verified the policy details with the life office.
When should I stop paying my monthly premiums?
If you have agreed to sell your policy to us, on your contract in the box on the last line it will say "to be paid by the vendor and inclusive: (and then a date) anything after that date can be cancelled but that date must be paid by you.
Do you buy Unit linked, clustered or flexi-plan endowment policies?
No we do not, we only buy 100% with-profits endowments. If your policy details mention units, being a managed fund, having clusters or being a flexi-plan then unfortunately these are not the sort of policies we buy.
I have lost my original policy documents; can I still sell my endowment?
Ask your life office for a REPLACEMENT policy document, but make sure it's a replacement and not a copy with the words "copy" all over it. With certain life offices - Standard Life, Scottish Amicable, Scottish Widows and Prudential - we do not always require a policy document.
What happens if the policy is secured against a mortgage?
A policy can be sold as long as suitable arrangements are made with the lender to repay or re-arrange the outstanding loan. Our solicitors will assist you with the arrangements to release the policy document from the lender.
How long does it take to value a policy?
Usually one working day. You will receive a contract in the post to sign and send back to us or you will receive an email to say we CANNOT make you an offer.
How long does it take to get paid?
Usually 3-6 weeks, the quicker the documents are supplied to our solicitors the faster we can complete the purchase.
Do you have any hidden costs or charges?
No we do not, the offer on the contract is the amount you will receive based on premiums paid up to the date shown on the contract. Any loans against the policy can either be deducted from the offer or re-paid by you.
What is the tax position if a policy is sold?
Selling the policy will result in the same tax consequences as surrendering it to the Assurance Company.
What happens to my personal details?
We collect your address and email solely for use by 1st Policy and our solicitors and only collect the information we need to buy your policy. This information will only be used in connection with the sale of your policy and for no other purpose.
We hate spam as much as you do. We do not share information with anyone. You will not receive spam or unsolicited post as a result of giving us your details.
Why is the supply of two referees needed?
If you sell to us, we will ask for two references. This is because, at some point after the sale of the policy, the new owner might need to establish if a claim has arisen.
How do I know you are who you say you are?
We are regulated by the FSA (Financial Services Authority) registration number 179442; our details can be found on their website. We are also a member of the APMM (Association of Policy Market Makers), the premier industry trade body.
How do I know I'll get paid?
The transfer of ownership of the policy is carried out by a solicitor who holds the money due to you in trust, in the same way as they would if we were buying your house. The money is then paid to you as soon as the solicitors receive notification that the legal ownership of the endowment policy has been transferred to us. The solicitors are regulated by the Law Society.